As the cyclical rally, which kicked off in May, continues to pick up pace, Annabelle Williams asks whether investors should expect sustained outperformance over defensives in the future.
Investors in UK equities have seen an unusual market dynamic play out in recent years. The start of 2013 saw the FTSE 100 rise to a near record high of 6,840, in an apparent show of investor confidence in the strength of the global recovery. But what was unusual for an equity rally was the biggest movers in the UK market were so-called ‘sleep-easy’ defensive stocks in sectors such as utilities, consumer staples and health. In contrast, performance from cyclical sectors such as resources, general retail, and technology lagged behind. While it appeared investors were looking to put r...
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